Fees & charges — evidence first
We list the main possible charges here, up front. The rule is simple: post-rental charges must be tied to a genuine cost you actually caused — at actual cost plus any disclosed handling fee, with the evidence. Most renters never see any of these.
Fines & tolls — these reach us as the registered keeper
When a speeding or traffic camera, parking warden, or toll system issues a notice to the vehicle's registered keeper, that notice comes to us. The process is always the same:
- 1
We receive the notice
The fine or toll is issued to the vehicle's registration. We receive it — by post, email, or via the rental platform.
- 2
We forward it to you immediately
We pass the original notice to you as soon as we get it, so you can pay directly to the authority and take advantage of any early-payment discount. Many Icelandic fines carry a 25% reduction if paid promptly — we want you to have that option.
- 3
If unpaid, we settle and recover
If the notice goes unpaid and we are required to settle it, we pay the fine, identify the driver from the rental record, and recover the actual fine amount plus a handling fee of ISK 3,000 from the card used for your booking (held by our PCI-compliant payment provider — we never see or store the full number). We attach the original notice as evidence.
| Type | What you pay | Our handling fee |
|---|---|---|
| Speeding or traffic camera fine | Actual fine amount (tip: 25% discount if paid promptly) | ISK 3,000 if it goes unpaid and we must settle it |
| Parking ticket or parking-app non-payment | Actual fine amount | ISK 3,000 if it goes unpaid and we must settle it |
| Road tunnel toll (e.g. Vaðlaheiði) | Actual toll — pay online within ~3 hours to avoid it reaching us | ISK 3,000 if it reaches us unpaid |
Handling fee covers the real administrative cost of receiving, recording, and forwarding the notice and identifying the renter from the rental record. It is not a profit margin. Exact amounts are confirmed in your rental agreement.
Other charges — only if they happen, all at actual cost
The table below lists the main other charges that can apply. None of these appear in a normal rental. Your exact price is confirmed when you book.
| Situation | Charge | Notes |
|---|---|---|
| Excessive cleaning — mud, sand, or waste inside | ISK 20,000 | Normal road dust expected and included. This applies only when the interior requires special wet-vacuuming or treatment. |
| Smoking or vaping inside the vehicle | ISK 45,000 | All vehicles are non-smoking. The fee covers deep-cleaning and ozone treatment. |
| Missing fuel on return | Actual fuel cost + ISK 5,000 refuelling fee | Full-to-full policy. The ISK 5,000 fee covers the time and admin of refuelling the vehicle; the fuel itself is charged at the current pump price. |
| Late return (over 1 hour past agreed time) | One extra rental day at the daily rate + ISK 10,000 late fee | Contact us if you know you will be late — we will do our best to accommodate you. |
| Lost or broken key | Actual replacement cost | Replacement keys in Iceland can be expensive (ISK 80,000–200,000 for modern push-button fobs). We source at actual cost. |
| Lost child seat, GPS, or other rented equipment | Actual replacement cost | Shown in your rental agreement for each item added. |
| Towing / recovery — when renter is at fault | ISK 500/km (min ISK 45,000) | Applies if you get stuck off-road, go off-road without a suitable vehicle, misfuel, or lock the keys inside. Breakdown due to mechanical fault is covered by our roadside assistance at no cost to you. |
| Tyre damage (not covered by standard CDW) | Actual cost — ISK 20,000–60,000 per tyre | See /insurance for tyre cover options. |
| Underbody, wheel arch, or suspension damage | Actual documented repair cost, capped at your excess | Excluded from standard CDW. Not covered under any waiver tier. |
| Wrong fuel (misfuelling) | Actual cost to drain, flush, and repair | Diesel in petrol or petrol in diesel — check the fuel cap label. This is renter's liability with no cover. |
| River crossing or water damage | Actual documented repair cost | River crossings are not permitted under any circumstances and are not covered by any protection level. |
| Restricted / F-road the car isn't cleared for | From ISK 75,000 + actual cost | The actual recovery + repair cost with a stated minimum (off-road from ISK 300,000), charged on evidence of a route breach — never an automatic fine. We show each car's route permissions before you book. |
| Driver not listed on the rental agreement | ISK 45,000 | Every named driver must be on the agreement (additional drivers ISK 1,250/day). If someone not on the agreement drives, the charge is a stated amount toward the added administrative and insurance-risk cost — applied on the evidence of the rental record, never as an automatic fine — and driving undeclared can also void your cover. |
Exact amounts are confirmed in your rental agreement. For collision and exterior damage (CDW), see how damage works and insurance. For the road-use charge — official rental-car daily fee plus any processing estimate — see road tax, tolls & parking.
Road-use charge — ISK 1,550 per started rental day
Unlimited kilometres are included in your rental. Iceland requires every car rental to account for the statutory Road Tax (kílómetragjald) on behalf of the government. The official rental-car daily fee is ISK 1,390 per started rental day. Our current estimate shows ISK 1,550 per started rental day: the official fee plus an ISK 160 processing estimate, shown before booking.
Self-drive rental carries the standard 24% VAT, included in the rental price. The Road Tax is shown as a separate, clearly-labelled line in your price breakdown, charged before or after the rental as the law requires.
Worked example
- 5-day rental → ISK 7,750
- 10-day rental → ISK 15,500
- 14-day rental → ISK 21,700
“Per started day” means a day begun counts as a full day — the same convention used for the rental rate itself. The fee appears as a clearly labelled line in your booking total and on your invoice before payment.
Official references: island.is/en/kilometer-fee and vegirokkarallra.is (the official 2026 kilometre-fee programme). Full explanation on our Driving in Iceland page.
Covers
Iceland's official rental-car daily road fee, plus the processing estimate shown before booking.
Does not cover — paid directly by you
- Tunnel tolls (e.g. Vaðlaheiðargöng, ISK 2,200 approx — pay via veggjald.is)
- Paid parking in Reykjavík and at some attractions
- National-park or site entry fees
Fuel policy — full-to-full
We operate a full-to-full fuel policy as standard: you collect the car with a full tank and return it full, and we never push prepaid fuel. Prepaid fuel is available as an optional extra if you would rather not refuel before returning.
If the car comes back with less fuel than it left with, we charge the cost of the missing fuel at current pump prices plus a refuelling service fee of ISK 5,000 to cover the time and admin of refuelling the vehicle. The fuel itself is charged at actual cost — no markup. Check the fuel cap label for your vehicle's fuel type (diesel or petrol) before filling up.
What we do not charge
- Administration or booking fees — our price is your price
- Third-party liability (TPL) — included on every rental by law, never an add-on
- Airport pickup surcharges — KEF pickup terms shown before booking
- Any markup on fuel — missing fuel is charged at the actual pump price, never above it (a flat refuelling service fee applies, shown in the fuel policy)
- Pre-authorisation processing fees — the card hold costs you nothing
- Loss-of-use fees without documented evidence of actual lost rental income
- Any profit margin on pass-through fines, tolls, or repair costs — we charge actual cost + a real, modest admin fee
Do you take a deposit?
We expect to place a card pre-authorisation — a temporary hold on your card equal to the excess of the cover you chose. A hold is not a charge: the money stays in your account and earns no income for us. It is simply reserved while you have the car.
- Accepted card types are confirmed before booking.
- The hold is released after you return the car with no new damage — typically within a few working days, depending on your card provider.
- If you choose Zero Excess, the covered-damage excess is ISK 0; exact card authorisation rules are confirmed at booking.
- Post-rental charges are limited to documented damage, missing fuel, fines or tolls issued during your rental, or extras you used.
Full details on how the damage and hold process works: How damage works →
If you ever receive a charge you do not understand, contact us — we will show you the evidence and walk through it with you.
Common questions
Will I be charged a fee for nothing?
No. We do not invent charges. Every item on this page is a genuine pass-through cost — a fine or toll issued to the vehicle, a cleaning bill for an unusually dirty return, or a documented actual cost you caused. We show you the evidence before any charge is processed.
How do I pay a fine I got while driving?
If you receive a paper ticket while driving, you can often pay it directly to the issuing authority. For speeding camera or parking fines that go to the registered keeper (us), we pass the original notice to you as soon as we receive it — usually within a day or two — so you can pay promptly and take advantage of the early-payment discount (typically 25% off in Iceland). Forwarding the notice itself costs nothing. If the notice goes unpaid and we are required to settle it, we recover the actual fine amount plus an ISK 3,000 handling fee.
Is there a deposit?
We expect to place a card pre-authorisation (a temporary hold) for the excess of the cover you choose — not a payment, just a hold on your available balance. It is released after you return the car with no new damage. Accepted card types are confirmed before booking. Conditional charges require documented damage, missing fuel, fines, or extras you used.
What is the Vaðlaheiði tunnel toll and how do I pay it?
The Vaðlaheiði tunnel (in north Iceland, near Akureyri) charges a toll. The simplest way is to pay online at the tunnel authority's website within a few hours of passing through — the notice will show your payment window. If you do not pay and the toll reaches us as the registered keeper, we settle it and pass it on to you at actual cost plus an ISK 3,000 handling fee.
What counts as excessive cleaning?
Normal road dirt and dust is expected — Iceland is a dusty, muddy country and we factor that in. We only charge a cleaning fee when the vehicle is returned in a condition that requires special treatment: interior mud or sand that requires wet-vacuuming, food or drink spills soaked into seats, pet hair throughout the interior, or smells that require ozone treatment. If in doubt, a quick hoover before you return will almost always avoid it.